SafeAuto Insurance Review 2017

SafeAuto Insurance specializes in providing nonstandard insurance to drivers with a not-so-great history behind the wheel, and competitive prices on the state minimum required auto insurance.

They've got a narrow appeal, but that's by design. Some drivers just need insurance that keeps them on the road at a low price, or coverage while remedying their driving record.

However, SafeAuto's low prices and accepting nature do come with some trade-offs. SafeAuto is only offered in 17 states, and its drivers give up on many of the perks larger insurance agencies offer, like discounts for bundling multiple insurance products.

What do people love the most about SafeAuto Insurance?

For one, its rates on state-minimum required liability insurance are competitive. When comparing premiums for SafeAuto and several competitors, its prices came in at two or three times less than other insurers like Acceptance or General Insurance.

The app SafeAuto offers provides some great functionality. It can be used to review your policy, access ID cards, and other documents, and make payments.

In the event that your car is damaged, SafeAuto lets you pick any shop for repairs. SafeAuto experts can still recommend a shop in your area if you need advice on a good mechanic, but you're not obligated to take it.

Customer service is also available 24/7 if necessary. Day or night, SafeAuto has people standing by to take your call.

A few consumer positive traits also stood out in their consumer reviews. Most people stated that they were happy with their lower rates and that they did provide accessible customer service any hour of the day.

What do people hate about SafeAuto Insurance?

Naturally there's some bad to go with the good. Insurance expert Ron Rankin of Smart Shop Your Car Insurance provided a look at a few of SafeAuto's flaws.

SafeAuto has a worse-than-average complaint ratio when compared to other insurers. Even if its helpline is available every hour of the day, most people aren't happy with it.

In fact, SafeAuto has 100% negative reviews on their Better Business Bureau page. This should be taken with a grain of salt since it's not uncommon for car insurance companies to have a high number of negative reviews, but it still stands out.

The company isn't ranked by AM Best, Moody's, or any of the other big rating agencies that judge how financially solvent a company is.

That can be a big drawback since it's not possible to tell whether SafeAuto is profitable or in the red. Though it's not likely that the company be going out of business anytime soon, it's still a minor red flag as you don't want your insurer not having enough money to pay your claim.

SafeAuto also doesn't offer any types of insurance other than car insurance. That means you miss out on chances to save by bundling several different types of insurance together at a lower rate.

This isn't atypical for the auto insurance industry. Most car insurance providers will provide an original quote over the phone or online based on the information you provide them, and then do a deeper dive into your driving history to figure out the final price.

What is nonstandard auto insurance?

As Brent Radcliffe of Investopedia explains, these categories are based on the risk car insurance companies take for insuring these drivers. Safe drivers get in fewer wrecks, so they cost insurers less money in paying out claims.

Preferred drivers pay the lowest rates since they're the least risky for insurers. These people rarely drive, drive safely when they do and don't have any recent moving violations on their record.

Standard drivers are a bit riskier and pay higher premiums because of it. They may have a speeding ticket or accident on their record, but nothing too outlandish.

While most insurers will use credit scores when determining rates for standard and preferred drivers, those offering non-standard insurers usually skip this step. Because of this, some nonstandard policies will require payment upfront for the life of the policy rather than letting drivers pay their premiums on a monthly or quarterly basis.

Who should consider using SafeAuto Insurance?

SafeAuto caters to nonstandard and high-risk drivers. If you fall into any of the following categories, you should consider them when shopping around for car insurance.

You require an SR-22

You're an inexperienced driver

You're over 70 years old

You're classified as a high-risk driver due to speeding tickets, frequent accidents or other reasons

You live in one of the 17 states they offer insurance:

- Arizona

- California

- Georgia

- Illinois

- Indiana

- Kansas

- Kentucky

- Louisiana

- Mississippi

- Missouri

- Ohio

- Oklahoma

- Pennsylvania

- South Carolina

- Tennessee

- Texas

- Virgina

The history of SafeAuto Insurance

SafeAuto is a relative newcomer in the auto insurance industry, getting its start in 1993 in Columbus, Ohio.

Since then, SafeAuto Insurance has grown to offer policies in 17 states.

Some people may remember SafeAuto for its commercials featuring fictional employee Justin Case from back in 2009. Not everyone realizes that the star of these ads didn't actually work for SafeAuto through – several people called the company and asked to speak with Justin after the television ads debuted.

What SafeAuto Insurance sells and does

SafeAuto specializes in offering auto insurance to drivers with a less-than-spotless record.

The company is a bit of a one-trick-pony in this regard. You won't find options for homeowners, renters or business insurance like you would with a larger company.

Most of SafeAuto's customers are looking for the cheapest prices on the minimum amount of insurance their state requires. The company focuses on providing these low-coverage policies at a low cost.

If you want comprehensive, collision or a few other types of car insurance, it does offer those as well.

SafeAuto Insurance's main products and services

It does offer a few other types of insurance as well. However, the company is less well-known for these products and therefore fewer experts have weighed in with their opinions on SafeAuto's other types of insurance.

Liability insurance

This is the type of car insurance drivers in every state are legally obligated to carry. You can't legally drive without it.

Liability insurance doesn't cover you, your car, or its passengers. It only provides coverage for other automobiles, people or property involved in an accident where you are at fault.

The coverage amounts for liability insurance are shown as three numbers, like $30K/$60K/$25K. Each number corresponds with the maximum payout for different types of damages.

The first number is the bodily injury liability limit per person injured. It's what your insurance would pay if someone needed medical care as a result of an accident.

The second amount is the bodily injury liability limit per accident. It's the maximum amount of how much in medical bills your policy would cover in an accident.

Here's how that works.

Say you're in a wreck with one person that causes $40,000 in medical costs for one other driver. If your policy was $30K/$60K/$25K, your insurance would cover $30,000 of their bills, and then you would be on the hook for the rest.

Now say you're in a wreck that injures two people, one for $25,000 and one for $30,000. Both of these amounts are under $30,000, so because your bodily injury liability limit per person is not reached, your insurance covers all of their costs.

Since the total amount of your bodily injury liability limit per accident is $60,000 and the total cost of their injuries is $55,000, your insurance would still cover everything.

As for the third number, that's your property damage liability limit. It's how much your insurance will cover for damage to other people's cars, personal belongings, or any other property damaged in an accident.

Liability insurance is SafeAuto's specialty. The company offers cheap prices on the minimum amount of insurance required to keep you on the road.

It's also so focused on this type of insurance that on SafeAuto's website, you can't even get a quote for more liability coverage than the state minimum.

The minimum amount of liability insurance won't provide you much coverage, however, and may leave you on the hook for any damages that exceed your property and bodily damages limits. The money you save on premiums could end up going to paying off any accident-related expenses.

Highya noted that when it comes to the liability insurance, the state minimum is the state minimum. There's no difference in coverage or quality between SafeAuto and any other car insurance company's policy for this no-frills insurance, so the choice comes down to premium prices.

Here, SafeAuto holds its own. A driver with a clean record received a $519 quote for the minimum liability insurance, as compared to $1,886 from Acceptance and $857 from Direct General.

However, the same driver could get rates at $355 from Infinity or $305 from United Automobile. Remember, these costs are just a ballpark figure and your individual price could vary–so it pays to shop around.

Excess medical expenses

This type of coverage pays for both your own or another person's medical bills as a result of an accident, regardless of who is at fault. It also pays for any remaining expenses after other types of insurance pay out.

That means if you were in an accident and sustained $60,000 worth of medical expenses and the other driver's insurance only covered $55,000 worth of damages, your excess medical insurance could pick up some of the remaining amount.

SafeAuto offers up to $5,000 worth of excess medical insurance. This is fairly limited compared to companies that offer coverage up to $10,000 or more.

The prices SafeAuto charges for this insurance are reasonable, coming in at $10 for six months of coverage.

Personal injury protection

Personal injury protection also covers medical expenses for yourself or others as a result of an accident. It pays out regardless of who is at fault.

This type of insurance is even more comprehensive than excess medical expenses, as it covers lost wages due to injuries sustained in a car accident.

Its rates seem unusually high compared to its competitors. For a 30-year-old male driver of a 2015 Honda Accord with a clean record, SafeAuto charges $33 for its maximum amount of protection.

As a comparison, Progressive Insurance offers double that amount for only $17.

Uninsured/underinsured motorist bodily injury

If an uninsured or underinsured driver causes a wreck, you could be faced with a significant amount of medical bills. This type of insurance covers that situation

Uninsured/underinsured motorist bodily injury covers you, members of your household and any passengers in your vehicle. It only kicks in if the other driver is at fault, and they either don't have or don't have enough liability insurance to cover the resulting damages.

These damages could include medical bills, lost wages, and pain and suffering.

This type of insurance works similarly to liability insurance. It covers a set amount of damages per person and a set amount per accident.

For the 30-year-old driver used in the previous example, SafeAuto offered $30k/$60k worth of liability insurance for $38. This is rather pricey, as Progressive provides the same amount of coverage for $23.

Uninsured/underinsured motorist property damage

When an uninsured or underinsured driver is at fault for an accident that damages your vehicle, uninsured/underinsured motorist property damage picks up the tab.

This insurance comes with a deductible. That means you still have to pay a set amount of money before it covers the rest of the charges.

For example, say you had $25,000 worth of uninsured/underinsured motorist property damage with a $100 deductible. If an uninsured driver hit your car and caused $1,000 worth of damage, you would pay the first $100 and then the insurance company would pay the remaining $900.

The coverage SafeAuto offers with this policy is fairly standard at $25,000 worth of coverage with a $250 deductible. It's still expensive compared with other insurers, coming in at $30 for our sample driver as compared to $6 for Progressive.

Accidental death benefit

In the unfortunate case where a person insured by an accidental death benefit policy is killed in a car accident, this type of insurance pays their family or estate a predetermined amount.

SafeAuto offers our 30 year old driver $10,000 in coverage at $15.

Comprehensive and collision insurance

These are usually two separate types of insurance, but SafeAuto lumps both of these types of coverage into one item.

Collision insurance covers damages to your car or property as a result of a car accident. It does not matter if you or another driver is at fault in an accident – collision insurance will pay out regardless.

Comprehensive insurance covers damages stemming from vandalism, natural disasters, theft or other incidents where you're not behind the wheel.

Both of these policies typically come with a deductible. These work the same as the deductible for uninsured/underinsured motorist property damage.

To get an idea of how that works, say you accidentally drive your car into a tree and cause $500 worth of damages. If you had a $100 deductible and $10,000 worth of collision insurance, you would pay the first $100 and then the insurance company would pick up the remaining $400.

Now say that the same tree overlooks your driveway, and falls onto your car during a nasty storm to do $500 worth of damages. If you had a $50 deductible and $5,000 worth of coverage, you would pay $50 and the insurer would pay $450.

SafeAuto lumps both of these policies together into one product. The company offers very little insurance for each of these, clocking in at $1,000 in comprehensive and $1,000 in collision for the maximum amount covered.

For our example driver, this cost $693 for a six-month term, which isn't a good deal. If our sample driver maintained this coverage for a year, he would have paid the insurance company over the $1,000 SafeAuto would pay out if his car were damaged in a collision or other incident.

Rental reimbursement

When your car is in the shop and you still need a way to get around, rental reimbursement defrays some of the costs of getting a rental car.

New car replacement

This type of insurance is exactly what it sounds like.

Say you buy a new car for $25,000. Six months later, the car gets totaled in an accident.

The car's already depreciated in value by that time up to 11%, according to Meg Stefanac of Trusted Choice. Even if it's covered by comprehensive or collision insurance, these policies only pay for the current value of the car – not what you paid for it.

New car replacement coverage would pay for a new vehicle of the same make and model.

Unfortunately SafeAuto doesn't offer new car replacement insurance, but that unavailability isn't out of place for insurers catering to the nonstandard market.

Strengths

Weaknesses

Its users seemed to disagree with Highya on the app's ease of use. Frequent crashes and difficulty navigating the app's features popped up in reviews on the iTunes store where it holds a two-star rating, and the Android store where it sits at three stars.

Users also reported difficulty logging in, making payments, and other issues.

Still, it's great to see a smaller insurer providing a functional app to compete with those offered by State Farm and Nationwide.

Website

SafeAuto's website allows you to get a quote, make payments, and see your bill.

SafeAuto Insurance's competition

Since SafeAuto Insurance caters to high-risk drivers, there's not really a single company that stands out neck-and-neck as their competition. The nonstandard insurance market is highly fragmented, with Andrea Wells reporting for the Insurance Journal that no one company controls more than 10 percent of the market, with most insurers serving less than 2 percent of the market.

However, there isn't much that separates one company from another. Most nonstandard insurance customers aren't looking for plans that come with a bunch of bells and whistles, so most of these companies don't offer them.

That's the main reason why SafeAuto doesn't offer a wider range of insurance products than its nonstandard insurance competitors. Most of these companies provide the same services as SafeAuto such as collision, comprehensive, and personal injury protection insurance. There may be one or two types of insurance or perks that a company offers, such as Acceptance Insurance's motorcycle insurance plans, but you won't find wildly different insurance plans from one non-standard insurer to the next.

If you're required to use a company specializing in high-risk insurance due to a less-than-stellar driving record or an SR-22, or if you're just looking for the minimum liability insurance than the decision will ultimately come down to price. That price depends on how your state regulates the insurance market, your driving record, age, and many other factors.

This makes it important to shop around since no two people will get the same rate from any insurer. If SafeAuto or a different competitor offers a lower rate, then choose them.

For those who want a broader selection of plans or aren't limited to the high-risk insurance market, then they should consider national companies such as State Farm, Allstate, or other insurers.

Biggest consumer complaints about SafeAuto Insurance

Like most insurers, SafeAuto's Better Business Bureau and Consumer Affairs profiles are rife with complaints. This is a common trait among insurers, as the one common trait all insurance companies share is that the products are never needed until the worst possible moment.

With that in mind, here are the most common complaints from SafeAuto's customers.

Quoted one price, charged another

Many Better Business Bureau reviewers complained about SafeAuto quoting a low price and then raising the cost of their final policy. This isn't necessarily the company's fault, as it uses the information customers provide to generate quotes online or over the phone and then conduct research into their driving record to set the final cost for premiums.

Slow at settling claims

Drivers on Consumer Affairs also complained about the company being slow in settling their claims after an accident. A few reported that adjusters waited a long time to contact them, didn't respond to messages, and were not the fastest in the world at dispensing payments.

A lack of customer support

Another frequent source of frustration of Consumer Affair reviewers was SafeAuto's customer support not being very supportive over the phone. Many customers reported rude, disinterested, or unhelpful customer service representatives.

Interested in SafeAuto Insurance? Best ways to get started

Whether you're interested in a no-frills state minimum plan or the other types of car insurance SafeAuto offers, you can get covered in one of two ways.

The first is by applying online. The company's quote generator lets you plug in your personal information, type of vehicle, lapses in insurance, and incidents that may affect your rates.

This is the recommended way, as you can compare prices for the various types of insurance offered and find out how much different types of coverage will cost you.

Remember though, the price you see won't be set in stone until your plan is finalized.

Alternatively, you can call 1-800-732-3288 and speak with a customer representative at any time.

If you do decide to purchase insurance from SafeAuto, the company accepts payments through direct withdrawals from your checking account, credit or debit cards, MoneyGram, Western Union, and ACE Cash Express. These payments can be made on a monthly or bi-monthly plan or paid in full upfront.

Like most non-standard insurers, SafeAuto doesn't offer many of the discounts that larger insurers offer. However, it does offer a paid-in-full discount in some states for paying for all of your policy upfronts rather than using a payment plan.

How to file an insurance claim with SafeAuto

If you need to report a claim to SafeAuto, follow these steps:

Gather the following information:

The date, time, and location of the accident

The year, make, and model of any involved vehicles

The names, addresses, and phone numbers of all involved drivers and passengers, making sure to note any injuries

Any insurance information for the other involved parties if necessary

A brief summary of how the accident occurred

Call SafeAuto at 1-800-723-3288

It's recommended that you contact the local authorities to report an accident, as this helps document the facts and maintain an accurate record of the incident.

Canceling your SafeAuto Insurance

You can cancel your SafeAuto Insurance at any time, but it's recommended that you have a new insurance plan set up beforehand to avoid gaps in coverage that can lead to higher premiums down the road. To cancel, dial 1-800-732-3288 and confirm that you would like to end your policy with a SafeAuto Insurance representative.

SafeAuto Insurance FAQ

What is the SR-22 document that SafeAuto provides to some of its drivers? Do I need it?

This is a certificate issued by the insurance company proving that you're carrying the minimum amount of coverage required by the state. It isn't an insurance policy in itself – just proof that you carry insurance.

If you were in a major accident, drove without insurance, or had a serious moving violation like a DUI, you may be required by law to get an SR-22. This can be done through your insurance company.

If you are not legally obligated to carry an SR-22, then no, you do not need one.

Most major insurers like Allstate and Geico can help you file an SR-22, as well as car insurance companies that specialize in non-standard drivers like SafeAuto.

The fee for filing an SR-22 is typically under $50. You'll be required to carry an SR-22 for an amount of time defined by the state, which often varies.

Not every state requires drivers to get an SR-22 after a serious accident or another incident. The following states don't have an SR-22 requirement:

Delaware

Kentucky

Minnesota

New Mexico

New York

North Carolina

Oklahoma

Pennsylvania

All other states do have SR-22 requirements.

Do products or services offered by SafeAuto differ from state to state?

Yes. SafeAuto does not offer insurance in every state, so its policies may not be available where you live.

In the states it does offer insurance, it offers the same set of policies and products.

How much does SafeAuto Insurance go up after an accident or speeding ticket?

This varies depending on the severity of the accident, or how fast you were speeding. If you are worried about how an accident or ticket could affect your rates, contact a SafeAuto representative.

What does comprehensive insurance cover?

Comprehensive insurance covers damages to your vehicle as a result of a natural disaster, theft or vandalism. It does not cover car wrecks or collisions.

Does my SafeAuto insurance cover a rental vehicle?

Rental vehicle insurance can be added to a SafeAuto policy featuring comprehensive and collision insurance. It will reimburse up to $20 per day for a rental vehicle while your car is being repaired.

Does my SafeAuto insurance cover me in Canada or anywhere outside the USA?

It's always a good idea to check with an insurance representative about whether your policy still covers you while traveling abroad. Most insurers will provide coverage while driving in Canada, and limited coverage in Mexico.

However, insurance coverage varies depending on which another country you may be visiting.

Does SafeAuto use credit scores?

Most large insurers use credit scores when determining premiums for their customers. However, many non-standard insurance companies, like SafeAuto, do not examine your credit history when setting a rate. SafeAuto focuses only on your driving record.

What are the financial strengths?

Like many smaller insurers, SafeAuto is not ranked by agencies that measure financial solvency such as Moody's or AM Best. That makes it difficult to determine SafeAuto's financial strengths.

How long does it take for SafeAuto insurance to pay for a claim?

This can vary depending on the severity of the accident or incident. Many of the company's customer reviews reported it being anywhere from days to weeks.

Does SafeAuto Insurance have gap coverage?

If a car is totaled, gap coverage is used to make up the difference between how much you paid for a car and its current worth.

For example, say you took out a $20,000 loan to purchase a car but totaled it one week later. At the time of the wreck, the car was found to be $19,000.

If you had comprehensive or collision insurance, you would be paid the current worth of the car at $19,000. Gap coverage would make up the remaining $1,000 so you are not left paying for a car you do not own.

SafeAuto Insurance does not offer gap coverage.

Does SafeAuto offer roadside assistance?

SafeAuto Insurance does not offer roadside assistance. It does offer towing and labor, which will reimburse you up to $40 if your vehicle requires a tow.

What does my rental insurance with SafeAuto cover?

Rental reimbursement insurance covers $20 for a rental car per day, up to a maximum of $600.

What are the deductibles on SafeAuto Insurance?

The deductible for uninsured/underinsured motorist property damage is $250. However, the customer can decide on what deductible they wish to set for comprehensive and collision insurance.

Will adding a teenager to my policy increase the cost?

Typically teenagers are considered a higher risk to insure and will increase the cost of your policy.

Will my rate go down if I make my payments on time?

SafeAuto does not offer any loyalty programs or discounts for on-time payments. However, you may receive a discount for paying the premiums for the life of your policy upfront rather than on a monthly or bi-monthly basis.

Should I opt for automatic payments and renewal or shop around after my policy is done?

If you are purchasing only the minimum required insurance, then always shop around. The main difference between insurers offering the state-mandated minimum liability insurance is its price.

Does SafeAuto cover third party liability?

SafeAuto does not offer third party liability among the products listed on its site.

Can I add a family member's car to my insurance plan?

You can add cars belonging to family members to your policy. This currently cannot be done online or through the app, so call a SafeAuto representative if you want to add another car to your insurance.

Can I get my car repaired by my own mechanic or are there specific repair shops I should get my car fixed from?

You can use your own mechanic. SafeAuto can also recommend a shop for repairs through their helpline.

What happens when I pay throughout the year without filing any claims?

Going long periods of time without filing a claim typically lowers your premiums, as you are seen as less of a risk to insure. If you drive safely, SafeAuto may lower the price of your insurance.

Does SafeAuto offer uninsured motorist coverage?

Yes. SafeAuto offers uninsured/underinsured motorist bodily injury insurance with a limit of $25,000 per person and $50,000 per incident. It also provides $25,000 in coverage for uninsured/underinsured motorist property damage with a $250 deductible.

The verdict on SafeAuto insurance

SafeAuto insurance focuses on offering the state minimum insurance at competitive prices. For some people, that's all they need.

Drivers who can't find insurance with any of the traditional large insurers like State Farm or Nationwide can also stay street legal by purchasing one of SafeAuto's policies. The fact that they specialize in non-standard insurance makes them perfect for people who need an SR-22, have a spotty record or don't have much experience behind the wheel.

They do have their faults. Drivers looking for homeowners or renters insurance should be advised to look elsewhere, as SafeAuto is only focused on auto insurance – which means fewer ways to save by bundling these multiple lines of insurance.

If you know that you want the state minimum insurance and nothing else, or you need an insurer that will cover you while reviving your driving record, SafeAuto is a choice to check out.

Interested in finding cheap auto insurance? Take a look at these helpful review and articles.